Radico Khaitan shares settle 2% higher after liquor maker posts 66% rise in Q2

Radico Khaitan Q2 results details Home-grown liquor major Radico Khaitan reported a 66.5 percent increase in consolidated net profit at Rs 232.34 crore for September quarter FY27, helped by its focus on a premium-first strategy. The company had clocked a net profit of Rs 139.55 crore in July-September FY26. Radico Khaitan, owns brands Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin, Magic Moments Vodka, and the 8 PM series.

The company’s revenue from operations rose 10.4 percent year-on-year to Rs 5,582.71 crore in September quarter FY27. Total volume was up 10.1 percent to 9.83 million cases (9 litres each), in which the 'Prestige and Above' segment reported 35.8 percent growth to 5.28 million cases. Regular & Others contracted 9.7 percent to 4.55 million cases in the second quarter of FY27. The decline was due to a high base in the year-ago period following a change in the route-to-market strategy in Andhra Pradesh, as well as the impact of policy changes in Maharashtra and Karnataka.

“Our premium-first strategy has delivered another quarter of remarkable results. The Prestige & Above portfolio volume grew 36 percent in Q2, well ahead of the industry, and continued to enrich our mix,” said Managing Director Abhishek Khaitan. Total expenses increased 8.35 percent to Rs 5,280.04 crore in the September quarter. Radico Khaitan's premium portfolio continued to drive volume growth, led by a 49 percent increase in vodka sales to 2.96 million cases, supported by strong growth in its whisky portfolio.

In the September quarter, Radico Khaitan’s gross margin expanded by 440 basis points year-on-year to 48 percent in the second quarter of FY27. It also faced inflationary pressure in grain. However, to mitigate the impact of increasing prices, it had built up higher level of stocks which supported the company through Q2 FY27. This resulted in higher working capital during the quarter, as per an earnings presentation.

Total income, which includes other income, was up 10.45 percent to Rs 5,587.76 crore in the September quarter. In the first half (H1), total income was higher by 10.45 percent at Rs 11,458.19 crore. Radico Khaitan reported net debt of Rs 175.4 crore as of September 30, 2026, down Rs 68.7 crore from March 31, 2026. Total debt stood at Rs 247.1 crore, including term loans of Rs 54.3 crore, while cash and cash equivalents stood at Rs 71.7 crore.

Term loans declined by Rs 75.7 crore during the six months ended September 2026. Radico Khaitan said it expects to become net debt-free in the second half of FY27. The company said that a rationalised duty framework in Karnataka is showing early signs of a more premium-friendly market, with encouraging signals from Tamil Nadu as well. The company separately announced on Tuesday that it would bring finance chief Dilip Banthiya onto the board as an executive director alongside CFO duties effective October 28. It also said that Senior Vice President Saket Somani would serve as deputy chief financial officer from the same date.